Apple becomes the 1st company to be charged with breaching the European Union’s DMA regulations

The European Union accuses Apple of violating its Digital Markets Act with App Store rules, alleging anti-competitive practices that restrict app developers and limit consumer choice.

European regulators have issued a preliminary ruling accusing Apple of breaching the Digital Markets Act (DMA) with its “steering” policies in the App Store. The ruling suggests Apple’s restrictions hinder competition by limiting app developers’ ability to guide consumers towards alternative offers.

• Investigation into Support for Alternative iOS App StoresThe European Commission has launched a new investigation into the tech giant’s practices regarding alternative iOS app stores in Europe. This includes scrutiny of the Core Technology Fee and the barriers developers face in offering alternatives to the App Store.
• Potential Penalties and Regulatory ResponseIf found guilty under the DMA, the tech giant could face fines up to 10% of its global annual revenue, totaling as much as $38 billion. The investigation stems from concerns over anti-competitive behavior and follows a previous €1.84 billion fine related to anti-steering practices.
• Apple’s Response and Market ImpactApple has criticized regulatory uncertainties linked to the DMA, citing delays in rolling out iOS 18 features in Europe. The company argues that compliance could compromise user privacy and data security, impacting the user experience on its platform.
• Future Implications for App Developers and ConsumersThe investigations and rulings against Apple are pivotal for app developers seeking to operate outside the App Store ecosystem and for consumers looking for alternative app distribution channels on iOS devices. Regulatory actions aim to foster a more competitive environment within the digital marketplace.

Representatives for Apple did not immediately respond to a request for comment from Business Insider, made outside normal US working hours.